An Overview of the Loan Process

Organize Your Documents

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

1. Complete and sign the loan pre-approval application located on the left side of our home page.  
2. To speed up the approval process, provide bank statements for the most recent  month, and recent statements for stock, mutual funds and IRA/401K accounts.
3. If you are requesting a cash out refinance, provide a letter explaining how you will use the refinance proceeds.
4. If applicable, provide a copy of your divorce decree and settlement agreement.
5. If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
6. If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.

Get Qualified

Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a commercial property, you should be pre-approved. 

Being pre-approved will:

1. Inform you of your maximum affordable property value, and save you from previewing properties outside your price range.
2. Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
3. Help you close quickly, since your loan is pre-approved.

Decide Loan Programs and Rates

What loan program is best for your situation? We offer many different loan options:

1. Think about how long much of a down payment you will make.  Your down payment is very critical in your commercial real estate acquisition.  Most lenders will require 20% or much more to even consider financing your property.  A large downpayment is what keeps many business owners from purchasing business real estate.  Fortunately, we have programs that can finance up to 90% of your property purchase and include construction and equipment costs.  
2. Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible. Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your rate.
3. Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. Consult an experienced commercial loan officer who can help you find a loan program that best fits your short- and long-term plans.

Obtain Loan Approval

Once your loan application has been received, we will start the loan approval process immediately. This involves verifying your:

• Business history
• Credit and Employment history
• Assets including your bank accounts, stocks, mutual fund and retirement accounts
• Property value
• Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

• Fill out the loan application completely.
• Respond promptly to any requests for additional documents. This is especially critical if you plan to close by a certain date.
• Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed.
• Anything that causes your debts to increase might have an adverse affect on your current application.
• Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
• Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
• Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Close the Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a title company closer. Be prepared to:

• Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.
• Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
• Sign the loan documents. The title closer will require that you have your picture ID with you. 

Your loan will normally close after you have signed the loan documents and all title company requirements have been met.